Using Sale Back financing has been used by business to alleviate an immediate debt load, to obtain better finance rates at the end of existing contracts or loans, to expand and to purchase land both reducing the amount of money needing to be borrowed. Sale back finance can be accomplished in one of two ways. Business can find a financier who will either purchase the equipment outright and sell it back to the company on fixed payments using the equipment to secure the loan, thus the business retains use and ownership for the duration of the loan. The second method varies only slightly in that the financier owns the equipment and rents it back to the business in which case they still retain use and the payments come out for the company’s operating expenses. Equipment types that are desirable for this type of arrangement is equipment with high resale value and slow depreciation like heavy equipment, forklifts, trucks, packing equipment and machinery of that nature.
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